Business, 23.04.2020 20:21 dreyiamacc9695

Samson Corporation is in the process of setting a selling price for a new product it has just designed. The following data relate to this product for a budgeted volume of 60,000 units.

Per unit Total

Direct materials $50
Direct labor 100
Variable manufacturing overhead 25
Fixed manufacturing overhead $1,800,000
Variable selling and administrative expenses 15
Fixed selling and administrative expenses 1,200,000

Samson uses cost-plus pricing to set its target selling price. The markup on tota unit cost is 25%.
Compute each of the following for the new product:
1. Total variable cost per unit, total fixed cost per unit, and total cost per unit.
2. Desired ROI per unit.
3. Target selling price.

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Samson Corporation is in the process of setting a selling price for a new product it has just design...

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